How to Minimize Corporate Credit Card Abuse |
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by: Janna Weiss
We've all heard the tales: government officials, school administrators, and even police officers have been caught using their business credit cards to finance personal shopping sprees. Those cases of credit card abuse are infuriating because taxpayers end up footing the bill for such purchases. But what if you're a manager whose employees have access to corporate credit cards? How can you make sure that their spending is legitimate?
First, it's important to define the boundaries of acceptable credit card use. Your company probably has a policy in place. Make sure that the employees receive a printed copy that's easy to understand. Get them to sign off, stating that they've receive the guidelines and agree to them. These guidelines should include deadlines for receipt submission as well as a list of permitted purchases.
Make sure that your employees know what will happen if they abuse the system. A system of consequences should be in place, and those consequences should vary depending on the severity of the employee's actions. A couple of accidental purchases could merit a warning, while using the corporate card to finance a personal vacation should be grounds for termination - and possibly litigation!
Finally, be vigilant with the corporate credit card statements just as you would with your personal bills. Take the time to read the statements each month, and speak with employees about questionable purchases. If your card offers extra security features, such as single-purchase limits or filters, take advantage of them. That will keep employees from making large purchases, or charging goods and services at retail stores.
Corporate credit card use can be very convenient for employees, but it's important to make sure those cards are being used as intended. A little vigilance and a few guidelines can prevent a major financial headache down the road.
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